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* Fresh violence on eve of poll could keep voters away

* Opposition leader says she is under virtual house arrest

* Prime minister offers prospect of post-election talks

about future polls

By Ruma Paul and Tony Munroe

DHAKA, Jan 4 (Reuters) – Bangladesh was hit by renewed

violence, with two more people killed on the eve of elections on

Sunday in which the ruling Awami League looks certain to prevail

in a walkover as the main opposition party boycotts the poll.

The Bangladesh National Party (BNP) called a 48-hour strike

from Saturday morning, on top of a transportation blockade, and

urged voters to stay away from the “farcical” election.

Without the BNP’s participation, only 146 of 300

parliamentary constituencies are being contested.

“I call upon countrymen to fully boycott the disgraceful

farce in the name of election of January 5,” BNP chief Begum

Khaleda Zia, who has been under what she calls virtual house

arrest, said in a statement late on Friday. The government has

denied that she is confined or under house arrest.

The BNP is protesting against Prime Minister Sheikh Hasina’s

scrapping of the practice of having a caretaker government

oversee elections and many of its leaders are in jail or in

hiding. The impasse undermines the poll’s legitimacy and is

fuelling worries of economic gridlock and further violence in

the impoverished South Asian nation of 160 million.

The office of prime minister has been held by Hasina or

Khaleda for all but two of the past 22 years and the rivalry

between them is bitter.

The European Union, a duty free market for nearly 60 percent

of Bangladesh’s garment exports, has refused to send election

observers, as have the United States and the Commonwealth, a

grouping of 53 mainly former British colonies.

A ruling party leader was shot dead in southwestern Khulna

overnight and a party youth activist was killed in clashes with

rival BNP supporters in northwestern Lalmonirhat, police said,

as renewed violence flared after several days of relative calm.

Two buses were set on fire in the port city of Chittagong

and more than a dozen polling stations had been torched by

opposition activists since Friday.

At least 10 people were injured when BNP activists hurled

bombs at a railway station and set on fire a train compartment

in the northern town of Natore, police said.

With more than 100 people killed in the run-up to the

election, mainly in rural districts, fears of violence at

polling stations are expected to keep many voters away.

“The Bangladesh government should end its crackdown on the

political opposition leaders and activists, and create

conditions for free and fair elections,” U.S.-based Human Rights

Watch said in a statement.

“Opposition parties should condemn and end violence by their

supporters.”

Bangladesh’s $22 billion garment industry, which accounts

for 80 percent of exports, has been disrupted by transportation

blockades ahead of the election.

The Awami League argues that the interim government system

has failed in the past.

While black-and-white campaign posters – colour is not

allowed – hung in parts of the capital, the main opposition’s

absence means the election has lacked the pomp and suspense of a

fully competitive poll.

Hasina has spoken of holding talks with the opposition

following the polls on the conduct of future elections. If

successful, that could lead to another election.

The BNP demands a halt to the current electoral process.

In the event of a breakdown of law and order, the military

could step in to take power, as it did in 2007, but is seen as

reluctant to do so.

(Additional reporting by Serajul Quadir; Editing by Ron

Popeski)